Housing costs rising in large municipalities, mainly due to property tax

Homeowners in large Dutch municipalities will spend an average of 6 percent more on their municipal housing costs this year, according to the Center for Research into the Economics of Local Authorities (COELO) at the University of Groningen. The increase is mainly due to a rise in property tax (OZB). As a result, tenants’ housing costs will increase by less because they don’t pay property taxes.

For the study, COELO looked at the prices in 39 large municipalities where 41 percent of the Dutch population lives. The municipal housing costs for homeowners - property tax, sewage charges, and a waste levy - are increasing to 925 euros per year on average. The average increase of 6 percent is mainly due to property tax increases of over 20 percent in Amsterdam, Utrecht, and The Hague.

If these municipalities are excluded, homeowners' housing costs increase by an average of 3.9 percent. However, property tax is also rising rapidly in other cities, by an average of 9.1 percent. Sewage charges and waste levies are increasing less quickly, by 4.8 and 4.5 percent, respectively.

Municipal housing costs for tenants will rise by 3.2 percent to an average of 414 euros per year. Not only are the costs rising less because tenants don’t pay property tax, but their sewage charges are also rising less than for homeowners, by 2.2 percent.